Guggenheim analyst Robert Drbul initiated coverage with a Buy rating on Revolve Group Inc (RVLV) today and set a price target of $50. The company’s shares closed yesterday at $32.79.
Drbul commented:
“We initiate coverage of RVLV with a BUY rating and $50 PT. RVLV operates in the attractive and growing online retail space that offers favorable growth trends, globally. RVLV generated >$500mn in net sales, with >1.25mn active customers (TTM; 1Q19), and has driven profitability in 15 out of its 16 year history, demonstrating the resilience of the model. Our BUY rating is predicated on our belief that RVLV is well-positioned to drive continued top-line growth of >20%, with increasing profitability, primarily through Active Customer growth and a thriving portfolio of Owned Brands. Revolve caters to women, providing ‘aspirational luxury’ clothing and accessories. RVLV leverages >15 years of investments in tech, data analytics, and innovative marketing to maintain and enhance a loyal customer base of millennial/Gen. Z women.”
According to TipRanks.com, Drbul is a 5-star analyst with an average return of 9.3% and a 66.4% success rate. Drbul covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Capri Holdings Limited, and Ascena Retail Group.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Revolve Group Inc with a $47.33 average price target, implying a 44.3% upside from current levels. In a report released today, Jefferies also initiated coverage with a Buy rating on the stock with a $60 price target.
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Based on Revolve Group Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $4.96 million. In comparison, last year the company had a net profit of $10.47 million.
Based on the recent corporate insider activity of 6 insiders, corporate insider sentiment is negative on the stock.
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Revolve Group, Inc. engages in the retail of next-generation fashion for millenial consumers. It operates through the Revolve and Forward segments. The Revolve segment offers assortment of apparel and footwear, accessories and beauty products from emerging, established and owned brands. The Forward segment provides luxury products.
